The Initial Public Offer (IPO) of Electronics Mart India Limited (EMIL) has become open for public subscription from today i.e. Tuesday (October 4). Investors can invest in this IPO till 7 October 2022. The price band of EMIIL's IPO is Rs 56 to 59 per equity share. This IPO has also been subscribed 1.51 times on the first day.
According to the BSE website, the lot size of the IPO is 254 shares. This means retail investors can buy at least 254 shares. For which an investment of Rs 14,986 will have to be made. At the same time, it can buy a maximum of 13 lots. Investors can invest a maximum of Rs 1,94,818.
Even before the company's IPO opened, its stock reached a premium of 55% i.e. Rs 32-33 per share in the gray market on 4 October. If we look at the gray market price (GMP), then in terms of the upper price band of Rs 59, it can be listed on 17 October (59+33=92) with a premium of Rs 92 i.e. 55%.
According to GMP, investing in this IPO can give good returns. Apart from this, many market experts also believe that investing in the IPO of this company should be done.
The size of the IPO ie Public Issue of Electronics Mart is Rs 500 crore (6,25,00,000 shares). That is, the company will raise Rs 500 crore from the issue.
50% of the issue amount of the company is reserved for Qualified Institutional Investors (QIP). Apart from this, 35% share is reserved for retail investors and the remaining 15% for non-institutional investors (NII). The allotment of shares of Electronics Mart will take place on October 12. The company's shares will be listed on both BSE and NSE on October 17.
The company will spend the money raised from the IPO for meeting capital expenditure, loan repayment, and working capital requirements, apart from general corporate purposes. Established in 1980, Electronics Mart is the fourth largest consumer durables retail company in India. It has 112 stores in 36 cities in the country. About 90% of its revenue comes from retail chains.